Acid Rain Program: Continuous Emissions Monitoring

ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 75

[FRL-5040-3]

Acid Rain Program: Continuous Emissions Monitoring

AGENCY: Environmental Protection Agency (EPA).

ACTION: Direct final rule.

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SUMMARY: Title IV of the Clean Air Act (the Act), as amended November

15, 1990, requires the Environmental Protection Agency (EPA or Agency)

to establish an Acid Rain Program to reduce the adverse effects of

acidic deposition. On January 11, 1993, the Agency promulgated final

rules implementing the program, including the General Provision and

Permit rule and the Continuous Emission Monitoring (CEM) rule (58 FR

3590-3766). Technical corrections were published on June 23, 1993 (58

FR 34126) and July 30, 1993 (58 FR 40746-40752). This notice of direct

final rulemaking contains an extension to the certification compliance

deadline for NOX and CO2 emissions monitoring of gas-fired

units and oil-fired units affected under title IV. EPA believes that

this compliance deadline extension will give the regulated community

more time to meet their obligations under title IV and will allow more

thorough Agency review of certification application submissions,

resulting in the likelihood of higher quality data. EPA believes this

deadline extension is non-controversial and therefore is publishing

this notice of direct final rulemaking.

DATES: If no adverse comments are received by September 19, 1994, the

effective date of these revisions will be October 17, 1994. If the

effective date is delayed, timely notice will be published in the

Federal Register.

ADDRESSES: Any written comments on these rule revisions must be

identified with the document control number ``A-94-16'' and must be

submitted in duplicate to: EPA Air Docket (6102), Environmental

Protection Agency, 401 M Street, SW., Washington, DC 20460.

FOR FURTHER INFORMATION CONTACT: Sharon Saile, CEM Section Chief, Acid

Rain Division (6204J), U.S. Environmental Protection Agency, 401 M

Street, SW., Washington, DC 20460. (202) 233-9180.

SUPPLEMENTARY INFORMATION: In the Proposed Rules Section of this

Federal Register, EPA is proposing to revise the Continuous Emission

Monitoring provisions. The Agency views these revisions as

noncontroversial and anticipates no adverse comments. However, if EPA

does receive adverse comments, EPA will publish a document in the

Federal Register withdrawing the direct final rule. All public comments

received will be treated as comments on the proposed rule as published

in the Proposed Rules Section of this Federal Register and will be

addressed in a subsequent final rulemaking notice. The EPA will not

institute a second comment period on the document in the Proposed Rules

Section of this Federal Register or on any subsequent final rule

addressing withdrawn portions of this final rule. Any parties

interested in commenting on these revisions to Part 75 should do so at

this time.

I. Acid Rain Program Background

On January 11, 1993, EPA promulgated the ``core'' regulations that

implemented the major provisions of Title IV of the Clean Air Act

Amendments of 1990 (CAAA or the Act), including the Continuous Emission

Monitoring (CEM) Regulation at 40 CFR Part 75 authorized under section

412 and 821 of the Act. The CEM rule specifies how each affected

utility unit must install a system to continuously monitor the

emissions and to collect, record, and report emissions data to ensure

that the mandated reductions in SO2 and NOx emissions are

achieved, that opacity and CO2 emissions are measured, and that

SO2 emissions are accurately measured so that the allowance system

functions in an orderly manner.

Since the CEM rule was promulgated, the operation of Phase I

utility units have essentially completed the first stage of

implementation of the rule, having submitted monitoring plans,

conducted certification testing, submitted certification applications,

and submitted their first quarterly reports. In addition, many Phase II

utility units have also begun implementation. As a result of issues

arising during implementation of part 75, EPA is revising part 75 to

extend the monitoring certification deadline for certain classes of

units for some pollutants.

II. Changes to Part 75--Certification Deadlines for Gas-Fired and

Oil-Fired Units

Affected units under title IV of the Clean Air Act Amendments are

required to install and operate continuous emission monitoring systems

or alternative monitoring systems approved by the Administrator. Part

75 specifies that all monitoring systems must be tested and approved

through a certification process. In the January 11, 1993 final rule,

EPA specified that required monitoring systems for units with emission

limitations beginning January 1, 1995 (Phase I units) must be

installed, operated, certified, and maintained by November 15, 1993 [40

CFR 74.4(a)(1)]. Similarly, units with emission limitations beginning

January 1, 2000 (Phase II units) must be installed, operated,

certified, and maintained by January 1, 1995 [40 CFR 75.4(a)(3)].

During the process of implementing part 75, the Agency learned that

many utilities with Phase II units were having difficulty planning and

performing certification testing early. Many utilities found the

testing procedures in Appendix E sufficiently confusing that they were

delaying testing for gas-fired and oil-fired peaking units. In other

cases, software vendors were still assisting their Phase I unit clients

and did not focus on the problems of Phase II units, causing further

delays. In addition, both utilities and stack emission testing firms

expressed concern that there might be a shortage of stack testers

because of the large number of unit all requiring stack testing at the

same time. There will be a total of approximately 1000 oil-fired and

gas-fired units submitting certification applications in Phase II,

compared to 5 oil-fired units in Phase I and 1300 Phase II coal-fired

units compared to 263 coal-fired units in Phase I. If review of all

these applications were done at the same time, the review might be

severely limited because of the resources required and the short time

period for review.

As a result of these concerns, the Agency is postponing the

certification deadline for two categories of monitoring: NOX and

CO2 monitoring of gas-fired and oil-fired Phase II units. Although

these units must monitor NOX and CO2 emissions [40 CFR

75.10], they do not have NOX emission limitations under Title IV

of the Act. Gas-fired and oil-fired units are being monitored for

NOX and CO2 to provide quality-assured NOX and CO2

emissions data for informational purposes. This data will also allow

the Agency to assess progress toward the NOX emission reduction

goals of the Act. Furthermore, the Act requires EPA to establish a

public database of CO2 emissions data. EPA believes that delaying

the certification of NOX and CO2 CEMS and Appendix E and G

monitoring for these units still meets these purposes, and helps to

ensure higher quality NOX and CO2 emission data than might be

obtained if the January 1, 1995 deadline were still required because a

phased schedule for certifications submissions will allow more thorough

and complete review of the submissions for each time period. The

revised deadline does not apply to coal-fired units or to monitoring of

SO2, opacity, or heat input for gas-fired and oil-fired units.

EPA believes that it is reasonable for utilities to begin to

monitor the NOX emissions in ozone nonattainment areas and the

ozone transport region of the northeast U.S. earlier than in other

areas. An accurate account of NOX emissions is environmentally

significant in such areas because NOX helps ozone to form (see

docket item ``Title IV Affected Utility Plants in Nonattainment Areas

or in OTR''). As a result, EPA is extending the certification deadline

for NOX monitoring of gas-fired and oil-fired units in ozone

nonattainment areas and ozone transport regions by six months only,

until July 1, 1995. Other gas-fired and oil-fired units that are not in

these environmentally critical areas may postpone their certification

testing until one year after the original deadline, until January 1,

1996. By instituting this phased-in approach, two purposes are

accomplished--certification applications will receive thorough review

and NOX information will be available first for the areas with the

greatest need for that information.

EPA has also included a delayed certification deadline for CO

monitoring from oil-fired units and gas-fired units in today's revision

to part 75. A CO2 monitor may be used both as a CO2 diluent

monitor in a NOX continuous emission monitoring system and as a

CO2 continuous emission monitoring system. If the NOX

monitoring deadline were extended but the CO2 monitoring deadline

were not extended, then the owner or operator of a gas-fired unit or

and oil-fired unit would still be required to install the CO2

monitor and stack test it before its certification as part of the

NOX monitoring system. In effect, an owner or operator would need

to go through stack testing and certification twice for the same

CO2 monitor. In order to make the NOX monitoring

certification deadline extension more useful and to avoid unnecessary

duplication of testing and certification activities, EPA is also

extending the certification deadline for CO2 monitoring.

Gas-fired and oil-fired peaking units may choose to use the

procedures in Appendices E and G of part 75 to estimate NOX and

CO2 emissions using means other than continuous emission

monitoring. Appendix E requires a utility to develop a correlation

between unit load and NOX emission rate. Appendix G allows any

utility, not just peaking units, to estimate CO2 mass emissions

from a unit using fuel sampling and analysis and fuel usage data. Both

of these methods require the development of software that is different

from that already developed and implemented for use under Phase I of

the program. In contrast, software programmers have already developed

software for units with continuous emission monitoring systems and for

units using Appendix D of part 75 for determination of SO2

emissions from oil-fired or gas-fired units. In order to allow software

programmers more time to develop software to implement Appendices E and

G of part 75, EPA is extending the certification deadline for NOX

monitoring and CO2 monitoring from these methods, as well as for

CEMS.

EPA is not extending the certification deadlines for coal-fired

units. Phase I utilities overwhelmingly were able to meet the statutory

deadline for monitoring with CEMS--95% of Phase I units completed

testing by the deadline of November 15, 1993. There are no class-wide

issues delaying implementation for coal-fired units using CEMS.

Therefore, EPA expects that all Phase II coal-fired units will meet the

certification deadline of 1/1/95. Furthermore, coal-fired units have

emission limitations for SO2 and NOx under the Acid Rain

Program. Coal-fired units emit large amounts of SO2 and NOx.

EPA also is not extending the certification deadlines for SO2

and opacity monitoring for gas-fired units and oil-fired units. Gas-

fired and oil-fired units have SO2 emission reduction obligations

under title IV of the Act. Oil-fired units, in particular, have

significant SO2 emissions. Many of these units have the

opportunity to implement Appendix D of part 75 (an optional SO2

emissions estimation protocol using fuel sampling and analysis),

thereby avoiding stack testing for CEMS. Some Phase I units were oil-

fired units using Appendix D. The Agency has issued guidance to the

regulated community that allows them to implement Appendix D.

Furthermore, software has already been developed to implement Appendix

D requirements. Opacity monitors do not require the services of special

stack testers or new software. Extending the deadline for SO2 and

opacity monitoring for gas-fired units and oil-fired units will not

reduce competition for stack testers or require development of software

that has not been developed for Phase I units. Because of these

reasons, EPA expects gas-fired units and oil-fired units to meet the

January 1, 1995 certification deadline for SO2 and opacity

monitoring.

III. Impact Analyses

A. Paperwork Reduction Act

EPA has determined that this final rule contains no information

requirements as specified by the Paperwork Reduction Act 44 U.S.C. 3501

et seq.

B. Executive Order Requirements

Executive Order 12866

Under Executive Order 12866, (58 FR 51735 (October 4, 1993)) the

Agency must determine whether the regulatory action is ``significant'

and therefore subject to OMB review and the requirements of the

Executive Order. The Order defines ``significant regulatory action'' as

one that is likely to results in a rule that may:

(1) Have an annual effect on the economy of $100 million of more or

adversely affect in a material way the economy, a sector of the

economy, productivity, competition, jobs, the environment, public

health or safety, or State, local, or tribal governments or

communities;

(2) Create a serious inconsistency or otherwise interfere with an

action taken or planned by another agency;

(3) Materially alter the budgetary impact of entitlements, grants,

user fees, or loan programs or the rights and obligations of recipients

thereof; or

(4) Raise novel legal or policy issues arising out of legal

mandates, the President's priorities, or the principles set forth in

the Executive Order.

It has been determined that this rule is not a ``significant

regulatory action'' under the terms of Executive Order 12866 and is

therefore not subject to OMB review.

C. Regulatory Flexibility Act

Pursuant to section 605(b) of the Regulatory Flexibility Act, 5

U.S.C. 605(b), the Administrator certifies on August 4, 1994, that this

rule revision will not have a significant economic impact on a

substantial number of small entities.

EPA performed an analysis of the effects upon small utilities of

the Acid Rain Core Rules (58 FR 3649, January 11, 1993), including

permitting, allowances, and continuous emission monitoring. The earlier

document concluded that significant costs would occur to small

utilities as a result of statutory requirements. For example, based

upon a worst case for model utilities, total regulatory costs could

represent as much as 6 to 7 percent of the average value of electricity

produced in the year 2000. About one-third of the 105 small utilities

currently affected could face impacts of up to this magnitude.

Today's revisions to part 75 have either no impact or a beneficial

impact on small entities by extending the time for complying with the

Acid Rain Program monitoring requirements for approximately 800 small

utility units. EPA expects today's revision to part 75 to maintain the

same cost of compliance as under the promulgated rule of January 11,

1993.

IV. Supporting Information

List of Subjects in 40 CFR Part 75

Environmental protection, Air pollution control, Carbon dioxide,

Continuous emission monitors, Electric utilities, Incorporation by

reference, Nitrogen oxides, Reporting and recordkeeping requirements,

Sulfur dioxide.

Dated: August 4, 1994.

Carol M. Browner,

Administrator, U. S. Environmental Protection Agency.

For the reasons set forth in the preamble chapter I of title 40 of

the Code of Federal Regulations is amended as follows:

PART 75--CONTINUOUS EMISSION MONITORING

1. The authority citation for part 75 continues to read as follows:

Authority: 42 U.S.C. 7651k and note.

Subpart A--General [Amended]

2. Section 75.4 is amended by revising paragraph (a)(3) to read as

follows:

Sec. 75.4 Compliance dates.

(a) * * *

(3) For either a Phase II unit, other than a gas-fired unit or an

oil-fired unit, or a substitution or compensating unit that is not a

substitution or compensating unit under paragraph (a)(2) of this

section: January 1, 1995.

* * * * *

3. Section 75.4 is amended by adding paragraph (a)(4) to read as

follows:

(a) * * *

(4) For a gas-fired Phase II unit or an oil-fired Phase II unit,

January 1, 1995, except that certification tests for continuous

emission monitoring systems for NOX and CO2 or excepted

monitoring systems for NOX under appendix E or CO2 estimation

under Appendix G of this part shall be completed as follows:

(i) For an oil-fired Phase II unit or a gas-fired Phase II unit

located in an ozone nonattainment area or the ozone transport region,

not later than July 1, 1995; or

(ii) For an oil-fired Phase II unit or a gas-fired Phase II unit

not located in an ozone nonattainment area or the ozone transport

region, not later than January 1, 1996.

* * * * *

[FR Doc. 94-20167 Filed 8-17-94; 8:45 am]

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